Indigenous oil firm institutes legal action against NCDMB and others

The Nigeria Content Development and Monitoring Board (NCDMB), has been dragged to court by Pioneer Divers International Limited, an indigenous oil servicing firm operating in Akwa Ibom state. The lawsuit stems from an alleged breach of the local content laws by NCDMB.

The defendants – Other defendants in the suit include: Exxon Mobil, America’s Boron Oil and Gas Ltd, and Subtech Company from South Africa.

Details of the case

In a suit number HEK/96/2019, the plaintiff, through its lawyer, Nwabueze Onukogu, accused NCDMB of breaching the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010, which regulates the patronage of local firms by international companies.

NCDMB conspired with Exxon Mobil – Onukogu accused NCDMB of conspiring with Exxon Mobil to award a contract titled, “Diving, Topside and ROV”, in their operations field in Akwa Ibom to Broron Oil and Gas Ltd in partnership with Subtech at $90 million.

The court should rule them guilty – He further urged the court to declare that the defendants have breached the provisions of the NOGICD Act, 2010, and to award them the sum of N100 million as damages in relief, having established that the defendants have failed in their duty.

“There shall be exclusive consideration of Nigeria indigenous companies of which the plaintiff is, and demonstrate ownership of equipment, Nigeria personnel and capacity to execute any work to bid on land and contract services including Diving, ROVs and Topside as contained in the Act.”

About the NCDMB

The Nigerian Content Development and Monitoring Board (NCDMB) was established by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which came into effect on April 22, 2010.

The NOGIC JQS was created in line with section 55 of the NOGIC Act which states that the Board shall establish, maintain and operate a Joint Qualification System (JQS) in consultation with industry stakeholders which shall be administered in accordance with provisions set out in the regulations to be made by the Minister in accordance with the provisions of this Act.

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